Bharat Forge Restructures Defence Business and Revises AAM India Acquisition

Bharat Forge Limited announced a strategic restructuring of its defence business, transferring select assets and obligations to its wholly-owned subsidiary, Kalyani Strategic Systems Ltd (KSSL) , through an itemised sale at fair value. In exchange, KSSL will issue up to ₹500 crore in Optionally Convertible Redeemable Preference Shares (OCRPs) to Bharat Forge. The move aims to enhance operational focus and strategic clarity in the defence sector and is expected to be completed within 45 days. In a related development, the company revised the acquisition cost of AAM India Manufacturing Corporation Pvt. Ltd. upwards to ₹770 crore from ₹544.5 crore, reflecting higher-than-expected cash reserves in AAM India as of the closing date on July 1, 2025. These initiatives underscore Bharat Forge’s commitment to strengthening its position in both the global forging and defence markets. All in all, Bharat Forge is positioning itself as the leader in defence market, this is substantiated by its IDDM Carbine bid, and being part of consortiums to develop/manufacture lot of DRDO assets.